The Dynamics of Cashless Society and Financial Well-Being: A Study of Informal Workers in Banyumas Regency

Abstract

The rapid advancement of digitalization has accelerated the transition toward a cashless society in Indonesia, particularly among informal workers. However, increased access to non-cash payment systems is not always accompanied by adequate financial capability, which may affect financial well-being. This study aims to examine the effects of cashless payment use, behavioral biases, financial capability, financial inclusion, and self-control on the financial well-being of informal workers in Banyumas Regency. This study employs a quantitative approach using primary data collected through a survey of 385 respondents selected through purposive sampling. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The results indicate that cashless payment use, financial inclusion, and self-control do not have a significant effect on financial well-being. In contrast, behavioral biases and financial capability have a positive and significant effect on financial well-being, with financial capability emerging as the strongest predictor. These findings suggest that improving financial capability plays a crucial role in enhancing the financial well-being of informal workers. However, the insignificant effects of cashless payment use, financial inclusion, and self-control indicate that expanding access to financial services and promoting digital payment adoption alone are insufficient to improve financial well-being without strengthening individuals' financial management capability